Moving to Dubai from the UK: the statutory residence test, split year and your company

Rules as of 5 November 2026

The short answer

Moving to Dubai ends UK tax on your new income only when you become non-UK resident under HMRC's statutory residence test. Your UK days and ties decide that, not your UAE visa. Plan the tax year you leave, tell HMRC, become UAE tax resident, and stay away more than 5 years if you hold company shares or big gains.

Does moving to Dubai end UK tax?

Not by itself. The UAE does not charge income tax on individuals, according to the UAE government portal. But the UK decides for itself whether you are still UK resident. If you are, it can tax your worldwide income.

Once you are non-resident, you normally don't pay UK tax on income earned outside the UK. UK income, such as rent from a UK property, can still be taxed.

So the question to answer first is simple: will I be non-UK resident in the tax year after I leave? The UK tax year runs from 6 April to 5 April.

The statutory residence test in three steps

HMRC's statutory residence test (SRT) works in a fixed order.

Step 1: the automatic overseas tests. If you meet one, you are non-resident for that tax year.

Step 2: the automatic UK tests. If you meet none of the overseas tests, you are UK resident if, for example, you spend 183 days or more in the UK, or your only home is in the UK, or you work full-time in the UK.

Step 3: the sufficient ties test. If neither set of automatic tests decides it, HMRC counts your UK days and your UK ties. Most people who move from the UK fall into Table A:

The UK ties that keep people resident

For someone who was UK resident in any of the last 3 years, HMRC looks at five ties:

• Family: your spouse, partner or a child under 18 is UK resident.
• Accommodation: you have a place to stay in the UK that you can use and you actually use it.
• Work: you work in the UK for 40 days or more (a day counts if you work more than 3 hours).
• 90 days: you spent more than 90 days in the UK in either of the last 2 tax years.
• Country: the UK is the country where you spent the most midnights that year.

This is where most moves go wrong. Family left in the UK, a house kept "just in case" and frequent trips back add up. Count your days and keep proof: flights, your Dubai lease, school letters.

The year you leave: split year treatment

Normally the UK treats you as resident or non-resident for a whole tax year. Split year treatment cuts the year in two: UK resident until you leave, non-resident after. It only applies if you fit one of HMRC's cases. The two most common for people moving to Dubai:

• Case 1, starting full-time work overseas. You were UK resident this year and last year, you will be non-resident next year under the full-time work test, and you meet the overseas work conditions.
• Case 3, ceasing to have a UK home. You had a UK home at the start of the year and then stopped having any UK home. After that you spend fewer than 16 days in the UK, and within 6 months you become tax resident in your new country, or you are there at the end of every day for 6 months, or all your homes are there.

If you don't fit a case, you can be UK resident for the whole year you leave. Choose your leaving date with your UK adviser.

Tell HMRC you're leaving

• If you don't usually file Self Assessment, use form P85.
• If you do, report it in the residence section (SA109) of your tax return. gov.uk says you can't use HMRC's online services to tell them you're leaving, so the SA109 goes in on a paper return. The paper return deadline is 31 October.

The 5-year rule: if you come back too soon

The temporary non-residence rules can tax some income and gains when you return, even though you got them while living in Dubai. They apply if:

• you had sole UK residence in 4 or more of the 7 tax years before you left, and
• you come back to the UK after 5 years or less.

What they can catch includes capital gains, dividends from a company you closely control, certain pension lump sums and loans from your company that are written off.

Example: you leave in May 2027, your UK company pays you a large dividend in 2028, and you return in 2031. That dividend can be taxed in the UK in the year you come back. If you plan to stay at least 5 years and a day, this rule doesn't bite. If you aren't sure, plan big dividends and share sales with your UK adviser before you move. More on this for company owners: what happens to your Ltd company when you move to Dubai.

Inheritance tax: the 10-year tail

Since 6 April 2025, UK inheritance tax depends on residence, not domicile. You are a long-term UK resident if you were UK resident in at least 10 of the last 20 tax years. After you leave, you stay in scope for between 3 and 10 tax years, depending on how long you lived in the UK. Ten to 13 years of UK residence gives a 3-year tail, and each extra year adds one more, up to 10. Your worldwide assets can stay in UK inheritance tax during that time. gov.uk adds a transition rule: if you were deemed UK domiciled on 30 October 2024, the status ends after 3 years of non-residence. Ask a UK adviser which rule applies to you.

Become UAE tax resident, and prove it

Leaving the UK is half the job. The other half is showing where you live now. Under UAE Cabinet Decision 85 of 2022, you are UAE tax resident if one of these applies:

1. your usual or main residence and the centre of your financial and personal interests are in the UAE;
2. you spent 183 days or more in the UAE in a 12-month period; or
3. you spent 90 days or more in the UAE in a 12-month period, you hold a UAE residence visa (or are a UAE or GCC national), and you have a permanent place of residence or a job or business in the UAE.

With that, you can apply to the Federal Tax Authority for a Tax Residency Certificate. It is strong evidence for HMRC, banks and the UK–UAE double tax treaty (signed 12 April 2016, in force since 25 December 2016). If both countries treat you as resident, the treaty's tie-breaker decides, looking first at where you have a permanent home. We prepare and file the application for you: Tax Residency Certificate in the UAE.

What about your company?

Your UK company doesn't move with you. A company incorporated in the UK is UK resident for corporation tax, wherever its director lives. You have four choices: keep it, make it dormant, strike it off or liquidate it. We compare them in what happens to your Ltd company.

For your new work, most people set up a UAE Free Zone company: 100% foreign ownership, a licence in your own name, and a residence visa through the company. The UAE corporate tax rate is 0% on taxable income up to AED 375,000 and 9% above that, and a Qualifying Free Zone Person can pay 0% on qualifying income. The point is that the company is run from Dubai, by someone who lives in Dubai. See Free Zone company setup and the residence visa through your company.

What this means for you

• Count your UK days and ties for the first tax year after you leave. Aim to meet an automatic overseas test.
• Choose your leaving date so split year treatment can apply, and tell HMRC (P85 or SA109).
• Close down UK ties you don't need: a UK home you keep available is the biggest one.
• Get your UAE residence visa, a Dubai lease and, after the qualifying period, a Tax Residency Certificate.
• If you own a company or large investments, plan dividends and sales with a UK tax adviser before you go.

Frequently asked questions

How many days can I spend in the UK after moving to Dubai? It depends on your ties. With no automatic test met, someone who was UK resident in the last 3 years becomes resident with 16 to 45 days and 4 ties, 46 to 90 days and 3 ties, 91 to 120 days and 2 ties, or over 120 days and 1 tie. Fewer than 16 days makes you non-resident automatically.

Can I keep my house in the UK? You can, but a UK home you can use is an accommodation tie, and it can stop split year Case 3 from applying. Renting it out on a long lease usually reduces the risk. Check your case with a UK adviser.

What if I move back to the UK in 3 years? The temporary non-residence rules can tax certain gains and close-company dividends you received while away in the year you return. Plan it before you leave.

This guide is general information based on official sources, reviewed by the 800 Business team. It is not tax advice. We set up and run your UAE company and help with UAE tax residence. For the UK side, speak to a UK tax adviser about your own situation.

Planning your move to Dubai?

In a free 30-minute Zoom call we look at your timeline, the Free Zone that fits your work, your visa and family, and the UAE documents you'll need to prove where you live. You leave with a clear plan and the questions to take to your UK adviser.

Book my free 30-minute call · Message us on WhatsApp: +971 52 713 7661

Also useful: guide to moving to Dubai · business setup in Dubai

Sources

All sources checked on 5 November 2026.

• GOV.UK, Tax on foreign income: residence: automatic UK and overseas tests, split year
• HMRC, RDR3 Statutory Residence Test guidance: day counts, ties tables, temporary non-residence (5 years, 4 of 7 years, income covered)
• HMRC manual, RFIG21040 Split year Case 1 and RFIG21130 Case 3
• GOV.UK, Tax if you leave the UK to live abroad: P85, SA109, UK income while abroad
• GOV.UK, Inheritance Tax if you're a long-term UK resident and HMRC manual IHTM47020: 10 of 20 years, 3- to 10-year tail
• legislation.gov.uk, Corporation Tax Act 2009, section 14: UK-incorporated companies are UK resident
• GOV.UK, 2016 UK–UAE Double Taxation Convention: signed 12 April 2016, in force 25 December 2016
• UAE Government portal, Taxation: no income tax on individuals, 5% VAT, corporate tax
• Federal Tax Authority, Cabinet Decision 85 of 2022 and Ministry of Finance, Ministerial Decision 27 of 2023: UAE tax residence of individuals
• Federal Tax Authority, Corporate Tax General Guide: 0% / 9% rates and Qualifying Free Zone Persons

Next step: Corporate services in Dubai

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